Elering’s Q3 Financial Results

Elering posts third-quarter total revenue of 27.4 million euros, operating profit of 8.2 million euros, and net profit of 7.5 million euros.

According to Peep Soone, Elering’s Financial Manager, the third quarter turned out better than forecasted primarily due to cross-border transmission capacity auction profits.

Compared to the same quarter last year, revenues grew by 6.6 million euros, whereas operating costs grew by 1.6 million euros, resulting in growth of operating profits by 3.8 million euros. Most of the increased revenues, a total of 3.7 million euros, came from the cross-border transmission capacity auction on the Estonian-Latvian border. The received auction revenue will lower the transmission fee during the next tariff period. The main reason for the increase in operating costs was the growth of balancing and loss energy expenses in relation to the opening of the electricity market and the removal of regulated electricity prices. Financial costs fell by 0.7 million euros, resulting in a total increase of 4.4 million euros in net profits.

The cash flow from operations was close to zero, since in Q3 the annual bond interests payment occurred, which amounted to almost the rest of the cash flows from operations. The investments into fixed assets were 75.8 million euros which marks the biggest quarterly investment sum yet in Elering’s history. Based on previously concluded loan agreements, 40 million euros were taken out in order to finance investments.

Elering is Estonia’s independent and standalone transmission system operator, whose main task is to ensure that Estonia’s consumers enjoy a consistent, high-quality electricity supply. To ensure supply security, Elering maintains and develops the domestic transmission network and external interconnections. Elering manages Estonia’s electricity system in real time, ensuring the functioning of the transmission network and the balance between output and consumption.

Elering’s Q3 financial results are available here.